LOWER INFLATION LIFTS UK CONSUMER SENTIMENT TO TWO-YEAR HIGH

Lower inflation helped consumers in England to feel better about their finances. The GfK consumer confidence index rose to -19 in January from -22 in December. Sunak has promised to voters that he will get the economy growing again. British inflation unexpectedly rose to 4% in December, it is below its peak of 11.1% in October 2022.

The BoE is expected to hold its main Bank Rate at a nearly 16-year high of 5.25% next week, but analysts are expecting a signal that the time for rate cuts might be approaching.

GfK said all five of its confidence gauges rose in January with the outlook for personal finances.

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